Morning News Call - India, December 7

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FACTORS TO WATCH
9:25 am: Power Minister R.K. Singh to inaugurate Conference on Power and
Renewable Energy in New Delhi.
10:00 am: Farm Minister Radha Mohan Singh at EIMA Agrimarch India event in
New Delhi.
11:00 am: Prime Minister Narendra Modi at inaugural ceremony of Dr. Ambedkar
International Centre in New Delhi.
11:00 am: NITI Aayog CEO Amitabh Kant at New Zealand-India Sustainability
Challenge in New Delhi.
2:00 pm: Max Insurance Company Director Manik Nangia, Renault MD Sumit
Sawhney, Jio Head-Special Projects Tanuja Rai Pradhan at Changing Landscape of
Building Strong Brand conclave in Gurugram.
3:30 pm: Regional Provident Fund Commissioner Aditya Shah at Provident Fund
Organization meeting in Mumbai.
4:00 pm: Jet Airways 2Q post-earnings conference call in Mumbai.
LIVECHAT – INDIA MARKETS
We discuss factors to watch in India's market with Vik Mehrotra, CEO and CIO
of wealth management firm Venus Capital at 3:30 pm IST. To join the
conversation, click here To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/
INDIA TOP NEWS
• India cenbank chief says state bank recap to be supplemented by reforms
Stronger state-run banks will get priority in India's more than $32 billion
plan to recapitalise the lenders, central bank chief Urjit Patel said on
Thursday, adding the programme will accompany broader reforms.
• India's c.bank holds rates, eyes inflation and rebounding growth
The Reserve Bank of India kept its policy rate steady on Wednesday, as
widely expected, after inflation accelerated to a seven-month high and stronger
economic growth reduced the need for monetary stimulus.
• Infosys seeks settlement with regulator on ex-CFO's severance pay
Infosys has sought a settlement with India's market regulator over a
disputed severance package awarded to its former chief financial officer.
• India stumped in efforts to clear toxic smog as cricketers throw up
India's state-run NTPC is launching bids for clean technology for two
coal-fired power plants near New Delhi, officials said, as criticism mounts over
the country's failure to end a toxic smog which strikes the capital every
winter.
GLOBAL TOP NEWS
• Trump recognizes Jerusalem as Israel's capital, defying allies, foes
President Donald Trump on Wednesday reversed decades of U.S. policy and
recognized Jerusalem as the capital of Israel, imperiling Middle East peace
efforts and upsetting Washington's friends and foes alike.
• U.S. Senate votes to pursue tax bill negotiations with House
U.S. Senate Republicans agreed to talks with the House of Representatives on
sweeping tax legislation on Wednesday, amid early signs that lawmakers could
bridge their differences and agree on a final bill ahead of a self-imposed Dec.
22 deadline.
• China's growth objectives clash with financial stability goal - IMF
China should prioritise financial stability above development goals, as
pursuit of regional growth targets and helping firms avoid heavy job losses had
led to a surge in debt, particularly at local government level, the
International Monetary Fund said.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
The SGX Nifty Futures were at 10,070.50, down 0.01 percent from its previous
close.
Indian government bonds are likely to trade lower in early session after the
nation's Monetary Policy Committee kept its policy rate unchanged and retained
its neutral stance. The yield on the benchmark 6.79 percent bond maturing in
2027 is likely to trade in a 7.01 percent-7.06 percent band.
The Indian rupee will likely open steady against the dollar, as traders
await fresh triggers and will keep an eye on the shares’ movement, while
lackluster U.S. data may restrict gains in the greenback.
GLOBAL MARKETS
• The S&P 500 fell a tiny bit on Wednesday, with Microsoft and other
technology stocks making modest gains but not quite offsetting losses in energy
shares after oil prices dropped more than 2 percent.
• Asian shares held close to a two-month low as softer oil and copper as
well as U.S. policy uncertainty kept sentiment in check, while high-tech stocks
struggled to recover after a searing sell-off.
• The dollar edged up against its peers, shaking off earlier losses versus
the yen, supported by signs that investors' risk appetite was improving again
and optimism on U.S. tax reforms.
• U.S. Treasury yields fell across the board on Wednesday as risk appetite
slid after a sell-off in some foreign equity markets, with further pressure
coming from a batch of largely underwhelming U.S. economic data and geopolitical
risks.
• Oil prices inched up on a decrease in U.S. crude inventories, but rising
gasoline stocks and crude production weighed on the market.
• Gold prices edged lower, hovering close to a two-month low hit earlier
this week, amid a steady dollar.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.48/64.51 December 6 -$188.8 mln $148.17 mln
10-yr bond yields 7.08 pct Month-to-date -$310.91 mln $379.14 mln
Year-to-date $8.98 bln $26.11 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.5200 Indian rupees)